Wholesale CRBOB gasoline have now dropped around 90 cents from the beginning of October to today, a bit over three weeks later.The gasoline blend is used in California.The drop comes on the heels of a 50 jump in prices at the pump that shocked California motorists early this month virtually overnight. Some stations sold gas for $5 a gallon. Only days later there are predictions of well below $4 gas on average in coming days as volatility in the market appears to be the new norm
Online website Gas Buddy says the average California gasoline price at the pump has now fallen nearly 40 cents since October 8,in little over two weeks, accelerating down in recent days to $4.29.The website says several gas stations in the state have dropped their retail price to as low as $3.39.
Around our S2S reading area the price at the pimp in Visalia has dropped a dime in the past day at the Visalia Costco from $3.99 to 3.89 today.
In Fresno several stations are selling regular for $3.85. In San Luis Obispo, the price at the Costco gas station is $3.94 down from $4.14 yesterday and $4.49 a week ago.
With the wholesale drop of 90 cents through today look for lower retail prices still.November gasoline futures were 35 cents lower than about 9 days ago today on the CME.
Nationally gas prices are dropping fast as well ,down nearly 20 cents in the past month says AAA.Some have pointed to the role gasoline prices play in the presidential election. ”Romney stands to gain if a small percentage of uncommitted voters in swing states decide to place blame for rising gasoline prices on Obama ”says one report.
Now they are heading the other way.
“Oil industry analysts reported significant drops in the wholesale market …which, if they hold, should bring prices well below $4 a gallon in Southern California,” said Auto Club spokesperson Jeffrey Spring. “The only question is how quickly that will happen.”
The latest California Energy Commission Fuels Watch report says refineries pumped out 4.4% more gas the week of 10/19 than on 10/12 and that volume is 11.9% higher than a year ago.Refinery gasoline stock is up 18.7% from the week earlier when refinery snafus cut production helping to send prices sky high.
Downward pressure on oil price may be helping to accelerate the price drop along with end of summer driving season.WTI crude is down to $85 a barrel today compared to $100 a barrel in mid-September.
Demand is down as motorists on U.S. roads drove less for the ninth-straight month in July when retail gasoline prices peaked at more than $4 per gallon, the government reported recently.